Utilities Select Sector SPDR ETF (XLU) - NYSEARCA
  • Mon, Jun. 27, 7:27 PM
    • One of the biggest Brexit beneficiaries is the utilities sector, as the Dow Jones Utility Average and the SPDR Utilities Select Sector ETF both surged to new record highs as Treasury yields tumble to multiyear lows.
    • The implied annual dividend yield for the Dow utilities is 3.08% and 3.18% for the utilities ETF, more than double the 10-year Treasury yield.
    • J.P. Morgan equity strategists said today that they believe bond yields "are not going anywhere but lower,” and thus remain overweight on the utilities sector.
    • At least six Dow utilities components posted record closes: NEE +3.3%, EIX +2.5%, AWK +2.4%, ED +1.9%, AEP +1.8%, PCG +0.8%.
    • Among other major utilities in today's trade: SO +1.9%, DUK +1.9%, SCG +1.6%, ETR +1.1%, D +1%, AEE +1%, XEL +0.9%, SRE +0.9%, PEG +0.7%, FE +0.7%, EXC +0.6%.
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU
    | Mon, Jun. 27, 7:27 PM | 36 Comments
  • Fri, Jun. 24, 10:30 AM
    • A sharp drop in long-term rates and vanquished expectations for even one rate hike this year has income players bidding up the prices of utility stocks (XLU +0.7%) and certain REITs even as the major average fall more than 2% post-Brexit.
    • A check of Fed Funds futures finds traders not fully pricing in a 25 basis point rate hike until 2018!
    • The mortgage REIT sector (REM +0.5%) welcomes the news, with players like Annaly (NLY +1.7%), American Capital Agency (AGNC +1.1%), Two Harbors (TWO +1.7%), and Chimera (CIM +1.3%) leading the way. Western Asset Mortgage (WMC -0.8%) is a laggard after slashing its dividend by more than 30% last night.
    • Equity REITs are decidedly mixed. Retail names like Realty Income (O +2.4%), National Retail (NNN +2%), and Vereit (VER +0.9%) are higher, as are healthcare players like HCP (HCP +1.2%) and Medical Properties Trust (MPW +0.1). Apartment REITs are mostly lower, as are mall operators like Simon Property (SPG -0.8%) and General Growth (GGP -0.7%).
    • The dollar is surging post-Brexit, however, and that's taking a chunk out of the hotel REITs: Hospitality Properties (HPT -1.5%), Sunstone Hotel (SHO -2.7%), LaSalle (LHO -3.8%), Pebblebrook (PEB -2.4%), RLJ Lodging (RLJ -2.5%).
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX, UTLF, JHMUVNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI
    | Fri, Jun. 24, 10:30 AM | 43 Comments
  • Fri, Jun. 17, 6:44 PM
    • Materials Select Sector SPDR ETF (NYSEARCA:XLB$0.2353. 30-Day Sec yield of 2.01%.
    • Energy Select Sector SPDR ETF (NYSEARCA:XLE$0.4364. 30-Day Sec yield of 2.89%.
    • Financial Select Sector SPDR ETF (NYSEARCA:XLF$0.1211. 30-Day Sec yield of 2.05%.
    • Industrial Select Sector SPDR ETF (NYSEARCA:XLI$0.3072. 30-Day Sec yield of 2.11%.
    • Technology Select Sector SPDR ETF (NYSEARCA:XLK$0.2113. 30-Day Sec yield of 1.81%.
    • Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP$0.3234. 30-Day Sec yield of 2.34%.
    • Utilities Select Sector SPDR ETF (NYSEARCA:XLU$0.4116. 30-Day Sec yield of 3.19%.
    • Health Care Select Sector SPDR ETF (NYSEARCA:XLV$0.2852. 30-Day Sec yield of 1.52%.
    • Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY$0.2767.
    • 30-Day Sec yield of 1.43%.
    • Financial Services Select Sector SPDR Fund (NYSEARCA:XLFS$0.1338.
    • 30-Day Sec yield of 1.85%.
    • Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE$0.2659. 30-Day Sec yield of 3.08%.
    • Payable June 27; for shareholders of record June 21; ex-div June 17. 30-Day Sec yield as of 6/16/16.
    | Fri, Jun. 17, 6:44 PM
  • Fri, Jun. 3, 10:12 AM
    | Fri, Jun. 3, 10:12 AM
  • Wed, Jun. 1, 11:35 AM
    • The market may think it's braced for a summer rate hike, but it isn't, says BAML equity and quant strategist Savita Subramanian, warning of an up to a 15% decline in the coming months.
    • The Fed's rush to hike is at odds with what's currently a profits recession - at least two quarters of year-over-year negative earnings growth. The central bank has only done this three other times, she says, and on two of those occasions, the market sold off over the next 12 months.
    • Big beneficiaries of low rates like consumer staples (NYSEARCA:XLP) and utilities (NYSEARCA:XLU) are also the most expensive sectors, she adds, furthering her point that the market has not priced in a hawkish Fed.
    • ETFs: CRF, SCHX, VV, USA, ZF, FEX, JKD, EEH, EQL, IWL, FWDD, SYE, SBUS, ZLRG, JHML, USSD, USWD
    | Wed, Jun. 1, 11:35 AM | 5 Comments
  • Wed, May 4, 3:29 PM
    • Of particular interest given he's on stage at Ira Sohn following hard-money advocate Stan Druckenmiller (hike rates, but gold), Jeff Gundlach thinks the idea of the Fed talking about higher rates while cutting growth forecasts makes no sense.
    • He's got a pair trade idea: Buy mortgage REITs (NYSEARCA:REM) and sell utilities (NYSEARCA:XLU). The strategy is based on the idea that the valuations of unloved and "cheap" mREITs, and over-loved and "pricey" utilities will converge.
    • Low-volatility stocks (of which utilities fit the bill) are an oxymoron, says Gundlach. Buying at these prices is like the old game "Dynamite Shack."
    • Live blog
    • Utility ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, PUI, SDP, PSCU, FUGAX
    • Mortgage REIT ETFs: MORL, REM, MORT
    • Previously: Bill Gross: Go long helicopter makers (May 4)
    | Wed, May 4, 3:29 PM | 11 Comments
  • Fri, Apr. 22, 4:30 PM
    | Fri, Apr. 22, 4:30 PM | 2 Comments
  • Tue, Apr. 5, 6:58 PM
    • The utilities sector (NYSEARCA:XLU) fell twice as hard as the overall S&P in today's trade, and the best guess from Barron's Ben Levisohn in explaining the move is a NYC rate change instituted by New York Independent System Operators.
    • UBS analysts say NYISO's summer 2016 capacity prices declined substantially in the NYC Zone-J to $10.99/KW-month from $15.50/KW-month, which the firm attributes primarily to the latest parameters which showed a substantial reduction of in-city requirements; the wider regions continued to clear at relatively comparable levels.
    • UBS sees the results as supportive of upstate generators Dynegy (NYSE:DYN) and Talen Energy (NYSE:TLN), but more cautious for NRG Energy (NYSE:NRG) due to the fickle nature of highly-sensitive NYC capacity prices.
    • Now read Electric utilities: Powerful uptrend, or 'lights out' for the stocks?
    | Tue, Apr. 5, 6:58 PM | 2 Comments
  • Tue, Mar. 29, 12:58 PM
    • The Obama administration yesterday defended its Clean Power Plan regulation limiting carbon emissions from power plants, telling the D.C. Circuit Court of Appeals that the rule is well within the bounds of its authority.
    • The Clean Air Act provides the EPA with “well-established authority to abate threats to public health and welfare by limiting the amount of air pollution that power plants pump into the atmosphere,” the agency wrote in a brief submitted to the court, and that the regulation was critical to addressing what it said was the most important environmental challenge facing the U.S.
    • The regulation would require a 32% cut in power plant carbon emissions by 2030, based on 2005 levels, by calling on states to shift their power sources from coal-fired plants to cleaner sources such as renewable sources and natural gas.
    • The D.C. Circuit will hear oral arguments on the legality of the regulation in June; whichever side loses is expected to appeal to the U.S. Supreme Court, which blocked the rule in February, sending it back to the D.C. court .
    • ETFs: XLE, XLU, VDE, ERX, OIH, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
    | Tue, Mar. 29, 12:58 PM | 28 Comments
  • Thu, Mar. 24, 5:51 PM
    | Thu, Mar. 24, 5:51 PM | 2 Comments
  • Fri, Mar. 18, 2:44 PM
    • Materials Select Sector SPDR ETF (NYSEARCA:XLB) - quarterly distribution of $0.1573. 30-Day Sec yield of 2.14% (as of 3/16/2016).
    • Energy Select Sector SPDR ETF (NYSEARCA:XLE)- quarterly distribution of $0.4524. 30-Day Sec yield of 3.18% (as of 3/16/2016).
    • Financial Select Sector SPDR ETF (NYSEARCA:XLF)- quarterly distribution of $0.1230. 30-Day Sec yield of 2.04% (as of 3/16/2016).
    • Industrial Select Sector SPDR ETF (NYSEARCA:XLI) - quarterly distribution of $0.2828. 30-Day Sec yield of 2.11% (as of 3/16/2016).
    • Technology Select Sector SPDR ETF (NYSEARCA:XLK) - quarterly distribution of $0.2202. 30-Day Sec yield of 1.77% (as of 3/16/2016).
    • Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) - quarterly distribution of $0.2709. 30-Day Sec yield of 2.35% (as of 3/16/2016).
    • Utilities Select Sector SPDR ETF (NYSEARCA:XLU) - quarterly distribution of $0.3675. 30-Day Sec yield of 3.31% (as of 3/16/2016).
    • Health Care Select Sector SPDR ETF (NYSEARCA:XLV) - quarterly distribution of $0.2367. 30-Day Sec yield of 1.60% (as of 3/16/2016).
    • Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) - quarterly distribution of $0.3211. 30-Day Sec yield of 1.43% (as of 3/16/2016).
    • Financial Services Select Sector SPDR Fund (NYSEARCA:XLFS) - quarterly distribution of $0.1226. 30-Day Sec yield of 1.78% (as of 3/16/2016).
    • Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE) - quarterly distribution of $0.3030. 30-Day Sec yield of 3.04% (as of 3/16/2016).
    • All are payable Mar. 29; for shareholders of record Mar. 24; ex-div Mar. 22.
    | Fri, Mar. 18, 2:44 PM | 2 Comments
  • Thu, Mar. 17, 3:08 PM
    • With the S&P 500 returning to more or less flat on the year, Bespoke digs down into sector performance and finds most of them nicely in the green, including the roughed-up energy group (NYSEARCA:XLE) with a 5.9% gain.
    • Leading on the upside, though, are the telecoms (NYSEARCA:XTL), ahead 14.4%, and utilities (NYSEARCA:XLU), up 13.3%. Consumer Staples (NYSEARCA:XLP), Materials (NYSEARCA:XLB), and Industrials (NYSEARCA:XLI) are all up between 3.7% and 4.5%, while Consumer Discretionary (NYSEARCA:XLY) is flat.
    • Holding the S&P 500 back, then, is healthcare (NYSEARCA:XLV), with an 8.2% decline, and financials (NYSEARCA:XLF), down 5.5%. Within, healthcare, the biotechs (NASDAQ:IBB) have plunged 27%.
    | Thu, Mar. 17, 3:08 PM
  • Fri, Mar. 4, 10:04 AM
    • In a victory for the Obama administration, the Supreme Court yesterday denied a request by states seeking to block an EPA regulation cutting mercury pollution from coal-fired power plants.
    • Chief Justice Roberts denied the states’ request without comment and without referring it to the other justices, apparently believing the request did not merit further action.
    • The decision comes three weeks after the full Supreme Court blocked Obama's Clean Power Plan for limiting greenhouse gas pollution from coal plants, which opponents read as a sign the court was willing to halt other regulations while they undergo changes and review.
    • But legal experts say Roberts' decision yesterday signaled opponents may not be successful in further attempts to halt environmental rules while they are still subject to legal challenges.
    • ETFs: XLE, XLU, VDE, ERX, OIH, UTG, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
    | Fri, Mar. 4, 10:04 AM | 17 Comments
  • Tue, Mar. 1, 2:29 PM
    • The S&P 500's (SPY +2%) rally today leaves it lower by just 3.2% year-to-date, and the Nasdaq's (NASDAQ:QQQ2.4% advance brings its loss for the year to 6.8%.
    • All sectors are lit up bright green, with the exception of the utilities (XLU -0.9%), which are contending with a nine basis point gain for the 10-year Treasury yield to 1.83%.
    | Tue, Mar. 1, 2:29 PM | 25 Comments
  • Thu, Feb. 25, 12:58 PM
    • Executives from American Electric Power (AEP +1.2%) and Xcel Energy (XEL +1.1%) both say they believe a federal crackdown on carbon emissions is coming sooner or later, regardless of whether Pres. Obama's Clean Power Plan holds up in court.
    • "Carbon regulation is not going away," AEP's manager of strategic policy analysis tells the IHS CERAWeek conference in Houston, saying his company is still moving ahead to figure out the best way to comply.
    • States such as Texas and West Virginia, which have led legal opposition to Obama’s plan, take the Supreme Court’s recent decision as a sign the rule ultimately will be struck down, while states including Massachusetts, Arizona and Virginia have said they will move ahead anyway.
    • The current situation causes uncertainty for utilities that operate across multiple states; for example, Xcel must balance policies in Minnesota, which leans toward expanding clean energy, against those in Texas.
    • ETFs: XLU, UTG, IDU, VPU, GUT, BUI, FUTY, RYU, UPW, FXU, SDP
    | Thu, Feb. 25, 12:58 PM | 2 Comments
  • Tue, Feb. 16, 11:27 AM
    • Analysts say the death of U.S. Supreme Court Justice Scalia over the weekend may have improved the likelihood that Pres. Obama's Clean Power Plan will survive a judicial review.
    • Last week, the Court voted 5-4 to delay the EPA's scheduled rollout of Obama's plan to dramatically cut carbon emissions from the power industry; the D.C. Circuit Court of Appeals likely will rule this fall on a challenge to the plan, with the conventional wisdom expecting the three-member court panel to rule favorably for the White House, setting up an appeal to the Supreme Court.
    • With the death of Scalia, a conservative voice on the court with a history of limiting government regulation, the chances of the plan being upheld would seem to have improved; an eight-member Court split 4-4 would allow the lower court ruling to stand, and it is far from certain that a Republican will be elected in November and name Scalia's replacement or that delaying tactics by Republican Senators will prove successful.
    • Environmental attorney Brian Potts had placed the odds of the Clean Power Plan surviving judicial review at less than 10%; with Scalia’s death, he places the likelihood at greater than 75%.
    • ETFs: XLE, XLU, VDE, ERX, OIH, UTG, KOL, IDU, VPU, ERY, DIG, DUG, BGR, IYE, GUT, BUI, FENY, FIF, PXJ, RYE, FUTY, RYU, UPW, FXN, FXU, DDG, SDP
    | Tue, Feb. 16, 11:27 AM | 6 Comments
XLU Description
The Utilities Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Utilities Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details on sponsor's website
Sector: Utilities
Country: United States
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